To a certain extent you are correct. IIRC, CIT had more assets than liabilities and also was one of the largest receivers of TARP money. Did that stop them from filing Chapter 11 BK? Nope. All invested in the previous CIT stock lost all value, then they emerge the next day with brand new stock that happens to be over 30$ per share now. Does that make sense to anyone?
"We are BK... commons are now worthless... oh by the way, here are new commons worth $20+ per share... THANKS FOR PLAYING"
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